Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits CRAIG FEEBREY Vice President Exploration 13 th July 2014
Forward looking statements Certain statements in this document constitute “ forward looking statements ” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. In particular, the forward looking statements in this document include among others those relating to the Damang Exploration Target Statement; the Far Southeast Exploration Target Statement; commodity prices; demand for gold and other metals and minerals; interest rate expectations; exploration and production costs; levels of expected production; Gold Fields ’ growth pipeline; levels and expected benefits of current and planned capital expenditures; future reserve, resource and other mineralisation levels; and the extent of cost efficiencies and savings to be achieved. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly taxation and environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; the availability and cost of raw and finished materials; the cost of energy and water; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS and other occupational health risks experienced by Gold Fields ’ employees. These forward looking statements speak only as of the date of this document. Gold Fields undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 2
Orogenic Deposits 1 Geological characteristics 2 Size and grade 3 Clusters and camps 4 Significant strike and depth extent 5 Deposits grow with time 6 Likelihood of development 7 St Ives and Agnew camps 8 Concluding remarks Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 3
Orogenic Deposits Characteristics ● A distinctive class of mineral deposit From Goldfarb et. Al., 2001 Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 4
Orogenic Deposits Ranking by Deposit Type ● Account for 18% of the worlds gold endowment (deposits > 500koz) ● Continue to be a significant source of gold production Rank Type Gold (Moz) % Cum % 1 Paleoplacer Gold 3125 37 37 2 Orogenic 1523 18 55 3 Porphyry 1220 15 70 4 Placer Gold 713 8 78 5 Epithermal LS 505 6 84 6 Carlin 249 3 87 7 Epithermal HS 219 3 90 8 VMS 181 2 92 9 IOCG 124 1 94 10 Gold Skarn 79 1 95 Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 5
Orogenic Deposits Ranking by Country ● Australia accounts for 22% of gold endowment in orogenic deposits globally (deposits > 500koz) Rank Country Gold (Moz) % Cum % 1 Australia 339 22 22 2 Canada 238 16 38 3 Uzbekistan 167 11 49 4 USA 124 8 57 5 Russia 83 5 62 6 Zimbabwe 73 5 67 7 Ghana 72 5 72 8 Mali 59 4 76 9 China 56 4 80 50 10 Tanzania 3 83 Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 6
Orogenic Deposits What makes this style of mineralisation attractive as a business? ● They are well understood geologically ● They can be large and of good grade ● They occur in clusters at different scales providing mining flexibility and optionality ● They can have significant vertical and horizontal dimensions and “grow volumetrically” with time as extensional exploration and development advances ● Access and ore reserve development does not have to be in place years in advance ● They are likely to be developed due to comparatively lower upfront capital investment, shorter construction lead times and clear commercial value drivers Commercially Attractive Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 7
Orogenic Deposits They can be large and of good grade From Hagemann & Cassidy, 2000 Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 8
Orogenic Deposits Province Scale Clusters ● 10 clusters > 5Moz Au ● 49 deposits > 1Moz Au ● Area selection is paramount! From Robert, F. et. al., 2005 Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 9
Orogenic Deposits St Ives Camp Scale Cluster ● 30 km strike ● 69 deposits with historic resources ● A 15.9Moz camp and growing! Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 10
Orogenic Clusters St Ives Camp ● 80% of resources occur in 25% of deposits 2 250 2 000 Larger deposits are the company makers 1 750 Larger deposits reset the LoM clock 1 500 Smaller deposits sustain the operations Ounces (k) 1 250 Invincible discovery (as of Dec 2013 R & R) 1 000 750 500 250 0 Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 11
Orogenic Deposits Wallaby Open Pit Granny Smith 2007 Wallaby Open Pit Recovered Production 2001- Dec 2006 1,504,309 oz @ 3.44 g/t Zone 250 Zone 60 2007 Wallaby Underground Zone 70 288,322 metres drilled 2007 Wallaby UG Reserve Zone 80 442,099 oz @ 5.0 g/t 1.2km Cumulative Recovered Zone 90 UG Production 2004-2007 Zone 100 176,944 oz 2007 Total ounces 619,043 oz Zone 110 Wallaby Underground 2007 View to West Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 12
Orogenic Deposits Wallaby Open Pit Granny Smith 2010 2010 Wallaby Underground 430,244 metres drilled Additional metres 2007-2010 Zone 250 141,922 metres Zone 60 Zone 70 2010 UG Reserve 604,772 oz @ 5.20 g/t Zone 80 Cumulative Recovered 1.2km Zone 90 UG Production 2004-2010 549,742 oz Zone 100 Additional ounces 2007-2010 535,471 oz Zone 110 Wallaby Underground 2010 View to West Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 13
Orogenic Deposits Wallaby Open Pit Granny Smith 2013 2013 Wallaby Underground 652,607 metres drilled Additional metres 20010-2013 Zone 250 222,363 metres Zone 60 Zone 70 2013 UG Reserve 838,431 oz @ 6.34 g/t Zone 80 Cumulative Recovered 1.2km Zone 90 UG Production 2004-2013 1,189,407 oz Zone 100 Additional ounces 2010-2013 873,324 oz Zone 110 Wallaby Underground 2013 View to West Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 14
Significant Depth and Strike Extent Agnew – Lawlers: New Holland – Genesis Resource New Holland Pit Genesis Pit N S NEW GENESIS Genesis 200 Series HOLLAND BATAVIA Genesis 500 SHEBA Series Genesis 600 Series Genesis 500 Series Batavia 500 Series New Holland 500 Series Genesis 700 Series Sheba 500 Series NH 600 Series Batavia 600 Series Sheba 600 Series NH 700 Series 2km Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 15
Significant Depth Extent Agnew – Lawlers: Waroonga Complex NORTH SOUTH Kath Upper Rajah Main South Main North 1.5 km Kath FBH Link Kim Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 16
Orogenics Deposits “Grow” with time and are “step changers” Relative Size (Year 15= 100%) 120% 100% 80% Orogenic 60% Porphyry 40% Epithermal 20% From Shodde, R., 2011 MinEx Consulting 0% Years after Discovery 0 5 10 15 1.52Moz 2.62Moz 3.80Moz Oz Growth Caution: In given year figures are based only on deposits with reported resource. This fixes the problem of delays in reporting a maiden resource, and biases from large deposits Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 17
Orogenic Deposits Are likely to be developed ● There have been 285 gold discoveries >100koz globally since 1994 ● Of these 285 discoveries, 29% are orogenics ● Of these 285 discoveries, 21% are in production ● Of those discoveries in production, 41% are orogenics! Australia Site Visits: A Brief Introduction To Orogenic Gold Deposits | Craig Feebrey | 13 July 2104 18
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